Civil Engineering MCQs

Page No. 60

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country ?


aCompany value


bGoing value


cGoodwill value


d Franchise value


View Answer Franchise value

What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?


aBook value


bMarket value


cFair value


dFranchise value


View Answer Fair value

Salvage value is sometimes known as _____________________?


aScrap value


bGoing value


c Junk value


dSecond-hand value


View Answer Second-hand value

The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called __________________?


aFair value


bMarket value


cGood will value


d Book value


View Answer Market value

A mathematical expression also known as the present value of annuity of one is called ____________________?


aLoad factor


bDemand factor


cSinking fund factor


d Present worth factor



What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?


aAsset recovery


bDepreciation recovery


cPeriod recovery


dAfter-tax recovery


View Answer Depreciation recovery

Using factor method, the depletion at any given year is equal to ?


aInitial cost of property times number of unit sold during the year divided by the total units in property


b Initial cost of property divided by the number of units sold during the year


c Initial cost of property times number of units sold during the year


d Initial cost of property divided by the total units in property



What is another term for “unit method” for computing depletion ?


a Initial cost method


bPercentage method


cFactor method


dSinking fund method


View Answer Factor method

The depletion allowance method of computing depletion is commonly known as ___________________?


aUnit method


bPercentage method


cFactor method


d Sinking fund method


View Answer Percentage method

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________________ which ever is smaller ?


aFixed percentage of gross income or the net taxable income


b Fixed percentage of gross income or 50% of the net taxable income


c 50% of the fixed percentage of gross income or 50% of the net taxable income


d50% of the fixed percentage of gross income or the net taxable income



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